2. Speeches
Speech by Minister S Iswaran at the Germany-Singapore Business Forum 2018
24 April 2018
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SPEECH BY MINISTER S ISWARAN, AT THE GERMANY-SINGAPORE BUSINESS FORUM 2018, TUESDAY, 24 APRIL 2018, 10.30 AM, ROM ROOM, HANNOVER MESSE FAIRGROUND HALL 2, HANNOVER, GERMANY
Dr Ulrich A. Sante, German Ambassador to Singapore
Co-Chairs of the Germany-Singapore Business Forum
Distinguished Guests,
Ladies and Gentlemen,
Introduction
1. Good afternoon. It gives me great pleasure to join the 13th edition of the Germany-Singapore Business Forum (GSBF), jointly organised by Enterprise Singapore and the Asia-Pacific Committee of German Business (APA). The GSBF has been an instrumental platform in bringing together stakeholders to exchange insights on innovation and cross-country partnerships, especially in manufacturing. It is also a testament to Germany and Singapore’s broad, deep and enduring partnership.
2. Alongside the GSBF, this year, Singapore is participating in the Hannover Messe for the first time in 2018. We have two country pavilions showcasing Singapore companies, and a third Singapore Government pavilion. Our significant presence at Hannover Messe of Singapore demonstrates our companies’ interest and commitment to forge deeper partnerships with their German counterparts.
Growing stronger bilateral relations between Singapore and Germany
3. Germany and Singapore have strong and long standing bilateral ties. Since 1965, Germany and Singapore have shared a history of defence and economic cooperation, as well as diplomatic relations. In 2017, bilateral trade grew 8.3% from 2016 to reach S$21.6 billion. Germany was our largest trading partner in the EU and, conversely, Singapore was Germany’s largest trading partner in ASEAN. Singapore is home to a strong contingent of German companies – close to 1,700 German companies are based in Singapore. German companies are comfortable with Singapore’s business environment and corporate culture, given our strong rule of law and regulations, and compatible business practices.
4. Looking ahead, the EU-Singapore Free Trade Agreement (EUSFTA) is now pending ratification. The EUSFTA will further boost our economic ties, by catalysing bilateral trade and investment flows. The benefits that our companies can enjoy are manifold. These include: tariff savings, preferential access to sectors, improved market access for trade in services, and enhanced intellectual property rights protection. It would also pave the way for more German companies to use Singapore as a springboard, to internationalise and tap into the fast growing ASEAN market. The EUSFTA can also serve as a pathfinder towards a broader EU-ASEAN FTA. We therefore look forward to the continued support of the German and Singapore business communities for the early ratification of the agreement.
5. Germany and Singapore have also been collaborating closely in areas such as science and technology.
a. In 2017, we signed a joint declaration on strengthening cybersecurity cooperation. Both countries are now collaborating in new areas including research and development in Industry 4.0, Fintech and sports.
b. Singapore’s Agency for Science, Technology and Research (A*STAR) has on-going collaborations with several German institutes such as Karlsruhe Institute of Technology, Technical University of Berlin, and Fraunhofer Institute for Laser Technology (ILT). A*STAR also recently signed a memorandum of understanding with Germany’s Fraunhofer IWS Dresden, for collaboration in the fields of laser-based Additive Manufacturing and diamond-like hard coating technology. Under this MOU, we can expect to see new developments on both scientific and application-oriented levels.
c. German companies such as Bayer CropScience, Bosch and Siemens Water Technologies have also established R&D centres in Singapore.
6. The numerous collaborations, of which I have only mentioned a few above, are valuable opportunities for both German and Singapore stakeholders. We believe that these collaborations will facilitate new capability developments in our companies and public-sector institutions, encouraging partnerships that will be important to the success of our industry transformation and innovation efforts.
Manufacturing companies need to continuously transform and innovate to sustain their competiveness
7. Singapore’s vision is to be a leading manufacturing hub, plugged into global centres of excellence, such as Germany, to transform the future of manufacturing. We aim to have the manufacturing sector contribute about one-fifth of our GDP. While the sector maintains its significance in our economy, its composition and operating models will have to endure. In this regard, Singapore has launched 23 Industry Transformation Maps (ITMs) since 2016, to prepare our companies for the next phase of growth. Our economic agencies like the Singapore Economic Development Board (EDB) and Enterprise Singapore will work with Singapore companies under these ITMs to embark on transformative projects.
8. Under the manufacturing ITMs, our companies will gain a deeper understanding of Industry 4.0 and how it will affect their businesses and workers.
a. Just a few months ago, EDB, in partnership with global testing, inspection, certification and training company TÜV SÜD, launched a world’s first tool – the Singapore Smart Industry Readiness Index. As a diagnostic tool, this index can be used by companies across all industries and sizes to better understand industry 4.0 concepts, assess the state of their facilities, and develop an all-encompassing transformation roadmap to deliver sustained value for business. This empowers industrial companies to systematically discover the potential of Industry 4.0 for their business.
b. In Precision Engineering, the Singapore government has supported 10 digital champions, comprising MNCs, large enterprises and SMEs, to lead the industry in technology adoption and sharing with the industry on their learnings and best practices.
9. To further drive collaborative innovation and enable more companies to embark on their transformation journey, Singapore is happy and honoured to host the inaugural Asia edition of Hannover Messe in October, later this year. Titled Industrial Transformation Asia Pacific (ITAP) – A Hannover Messe Event, the trade show will be held annually in Singapore starting 2018. It will provide a regional platform for leading manufacturers and technology suppliers to showcase and be exposed to top notch, cutting-edge technologies as well as best practices. We hope that ITAP will help to drive more business collaborations particularly in Asia. I invite all of you to the ITAP event in Singapore this October.
Singapore is a complementary partner to Germany in the innovation of new solutions
10. I believe it is important and there is much scope to enhance our partnership and co-innovation between German and Singaporean companies as they learn from each other and grow together. Today, we live in an era of rapid technology change and disruption to jobs and business models. Even as technological advancements disrupt industries, they also create valuable new opportunities. To seize these opportunities, our enterprises must innovate.
11. Like Germany, Singapore places great emphasis on innovation. Our complementary strengths make it meaningful for German and Singaporean enterprises to be innovation partners and build deeper technical capabilities.
a. First, Germany is the largest market in Europe, presenting significant opportunities for Singapore companies, especially in manufacturing and environmental technology, which are your core strengths.
b. Second, Singapore serves as an ideal springboard into Asia for German companies. Rapid urbanisation and industrial developments in ASEAN are driving demand for innovative solutions in fields such as in
e-Commerce, robotics and Internet-of-Things (IOT). Given our proximity, familiarity with and connectivity to the region, Singapore can be the ideal hub for German companies to testbed solutions before scaling to the ASEAN market.
c. In particular, this year, Singapore holds the chairmanship of ASEAN and the themes we have chosen are “resilience” and “innovation”. We want to continue shaping ASEAN as a cohesive region that can adapt to a complex and uncertain economic environment, and an economic bloc that is prepared for future opportunities, especially in the areas of innovation and the digital economy.
12. There are ongoing efforts to catalyse German-Singapore partnerships in growth areas of mutual interests. In the past 2 years, we have launched initiatives such as the Germany-Singapore SME funding programme and the first Singapore-German Academic-Industry (2+2) International Collaboration initiative jointly announced by A*STAR and the Federal Ministry of Education and Research (BMBF). An example of an innovative project between German and Singaporean companies is that between vTrium and Heliatek. Both companies jointly test-bedded their innovative solution – the World’s most powerful and Asia’s largest Organic PV power generation installation in Singapore, before proceeding with commercialization in Asia.
13. Another way we can collaborate is through the Global Innovation Alliance (GIA). This is an initiative of the Singapore government to connect with major innovation hubs around the world to foster partnerships. Through networks within the markets, entrepreneurs and businesses from both Singapore and the ASEAN Member States can interact, connect and co-create ideas and solutions. Phase 1 of GIA features nodes in Beijing, Bangkok, Jakarta and San Francisco. We hope to identify partner locations in Europe as well to foster collaboration between like-minded entrepreneurs.
Conclusion
14. To conclude, the economic ties between Germany and Singapore are longstanding, broad and deep. Looking ahead, there is potential for us to do more together for the benefit of our businesses and our people.
15. The discussions and networking sessions at GSBF 2018 will offer excellent opportunities for exchange of innovative ideas and to build partnerships and networks.
16. We look forward to building stronger ties between our two countries in the decades ahead. Thank you.